Fee-for-Service (FFS) Plan: How Practicing Providers are Compensated

How are practicing providers compensated under the Fee-for-Service (FFS) plan?

Practicing providers are compensated on a fee-for-service basis under which plan?

Practicing providers are compensated on a fee-for-service basis under the Fee-for-Service (FFS) plan. This means they get paid for each individual service they provide.

Fee-for-Service (FFS) plan is a payment model in which practicing providers receive payment for each service they provide, rather than a set amount per patient or capitated payments. This traditional payment method allows providers to bill separately for each service, test, or procedure performed. It gives freedom to both providers and patients, as providers have the flexibility to offer any service needed, and patients can choose their providers and treatments.

Unlike other health care organizations like Health Maintenance Organizations (HMOs) or Preferred Provider Organizations (PPOs), where providers may receive a fixed payment per patient regardless of the services provided, in FFS, providers are incentivized to offer more services as they are paid for each one. This can sometimes lead to concerns about overutilization of services, unnecessary procedures, and inflated costs.

Overall, the Fee-for-Service (FFS) plan remains a popular payment model for many practicing providers due to its flexibility and direct correlation between services provided and compensation received. Providers must ensure accurate billing and proper documentation to avoid issues like claim denials or audits.